Setia Nexus - the Trendy Modern Commercial HUB in Klang
by Jon Abraham
18 Feb 2008
Introduction
Discovered a hidden trendy modern "commercial-residential" hub project in Klang...can you guess by which developer?
It has been 3 times consecutively that SP Setia has been named Malaysia No.1 property developer. What does that tell us about the new development of Setia Nexus 1 & Setia Nexus 2 that has an estimated total GDV of RM130 million & RM120 million & a total of 10.48 acres of lease-hold & free-hold land. The project was recently launched on 12 Jan 2008.
Setia Nexus is aiming to be The Trendy Modern Commercial Development with an integrated of offices, retail shops, residences & condominiums designed to allow the collaboration of businesses, investment & lifestyle, everything together in one vibrant place. Live, learn, work and play is the key development theme.
Location
Setia Nexus is located in the fast-growing Southern Klang corridor. In between Bandar Botanic and Bukit Tinggi Klang. A strategic captive market surrounded by 3 huge hyper-markets – Jaya Jusco, Tesco & Giant along Jalan Langat , when driving towards the Hospital Besar, Klang.
Developer
A joint-venture basis between SP Setia Berhad Group & Kemboja Mahir Sdn Bhd. We will have peace of mind with SP Setia Group behind the development and growing the community.
Special
What is so special about this development vs. other development within Klang? We found a few distinctive points.
- First Integrated commercial project – commercial, retail & condominium projects,
- Huge ready captive market with huge hypermarkets in the vicinity. Riding the economic wave.
- Malaysia is experiencing the start-ups of more & more small businesses. Graduates & non-graduates are become entrepreneurs & less are relying on employment opportunities & this is positive to Setia Nexus 1 & 2.
- Klang community likes to stay close together & this is a modern project & still within Klang.
- Larger population. It boasts of almost 0.995 million vs 0.550 million only in Petaling Jaya.
- The third most populated city after Kuala Lumpur (1.809 million ) & Subang Jaya (1.09 million)
Against
Klang community is not concentrated. It has a large total area of 573 KM square, which is more than 10 times of the total area in Petaling Jaya of 51.4 KM square. This High but dispersed population will have slower capital appreciation than concentrated population like what we are experiencing in Kuala Lumpur & Hong Kong city.
Recommendation
What is the recent property investment climate in Asia, especially Malaysia. Let us quote top notch Property Man of the Year, Tan Sri Liew & tap his mindset.
"The key drivers for the retail property sector are the economic climate, expanding middle class and growing affluence. With the strong economic prospects and people friendly budget, I believe the retail sector will continue to perform well,” Liew said. The recent pay rise for civil servants and approval for monthly withdrawal for housing loan from the Employees Provident Fund had boosted the people's disposable income and country's retail prospects & the recent repeal of the Real Property Gain Tax and easing of Foreign Investment Committee ruling has augmented the attractiveness of Malaysia's properties, especially to foreigners. Moreover, the unlocking of some RM9bil worth of funds from the Employees Provident Fund is set to unleash a profound spillover effect on the industry. The higher purchasing power arising from the monthly EPF withdrawal will enable contributors to upgrade to better homes.
From our observation & all the statistics captured, the future looks exciting for the retail sector. Small businesses will flourish. More & more people will be looking for additional source of income & invest in small businesses & this creates an opportunity for retail outlets. Also, thanks to buoyant consumer sentiments, record tourist arrival and the growing internationalization of the Malaysian property market. Malaysia seems to be the destination country.
